6108 - AUTHORIZATION TO USE ELECTRONIC FUND TRANSFERS AND AUTOMATED CLEARING HOUSE ARRANGEMENTS

In accordance with the provisions of law, the Board of Education authorizes the acceptance and distribution/transmission of electronic fund transfers (EFTs) and automatic clearing house arrangements (ACH). The Superintendent shall put in place measures to protect the integrity and security of such transactions to comply with mandates of State and Federal agencies or programs, including Medicaid.

Definitions

"ACH arrangement" means the agreement between the originator of the ACH transaction and the receiver of the ACH transaction.

"ACH transaction" means an electronic payment, debit, or credit transfer processed through an automated clearing house.

"Automated Clearing House" or "ACH" means a national and governmental organization that has the authority to process electronic payments including, but not limited to, the national automated clearing house association and the Federal reserve system.

"Electronic Transactions Officer" or "ETO" means the Superintendent or another person designated by the Board to have the responsibilities of the ETO as prescribed in the Michigan Electronic Transactions of Public Funds Act.

All District staff shall comply with all provisions of the Uniform Electronic Transaction Act when creating, generating, sending, communicating, receiving, storing, processing, using, and relying upon electronic records. Further, all District staff and other persons who use electronic signatures when completing transactions with the Board shall do so in compliance with State law.

ACH Transactions and Arrangements

The Superintendent or another employee designated by the ETO is authorized to engage in the electronic transfer of funds and ACH arrangements in accordance with this policy. The Superintendent shall be responsible for overseeing the District's ACH transactions, including payment approval, accounting, reporting, and compliance with this ACH policy.

Internal Controls

The Superintendent is responsible for the disbursement of funds and shall submit appropriate documentation to the Board. Such documentation shall include:

1. information regarding the goods or services purchased;
2. the cost of goods or services;
3. the date of the payment; and
4. departments serviced by the payment.

This documentation shall be contained in the District's electronic general ledger software system or in a separate report to the Board. ACH invoices must be reviewed and approved prior to payment.

The District's system of internal controls (see Policy 6111 - Internal Controls) shall be used to monitor the use of ACH transactions.  

The Superintendent is authorized to develop administrative guidelines concerning the use of electronic fund transfers and ACH transactions.

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